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Retailers expect business recovery from COVID-19 will take 6 months: Survey

By Retail4Growth Team | April 08, 2020

20 percent of retailers feel that business recovery will take more than 12 months.

A survey by Retailers Association of India (RAI), titled, 'Impact of COVID-19 on Indian Retail,' said that 70 percent of the retailers in India expect the business recovery to happen in more than six months due to the ongoing COVID-19 crisis which has hit the retail sector of the country hard. It further added that 20 percent of retailers feel that business recovery will take more than 12 months.

The survey, which was filled by 768 respondents across India, said that small, medium and larger retailers are expecting to lay-off 30 percent, 12 percent and 5 percent of their manpower respectively going forward. On the whole, retailers who have taken part in the survey expect the layoff in the tune of about 20 percent, said the survey.

85 percent of the retail costs are fixed costs, which is putting several financial pressures on retailers. The industry is experiencing severe liquidity challenges which can lead to large scale unemployment. The cash inflow of the industry has come to a standstill, while the fixed operating costs remain intact.

The survey further highlighted that more than 95 percent of non-food retailers who have their shops closed in the lockdown are looking at practically no revenues till the lockdown is in place. In the next six months, non-food retailers expect to earn 40 percent as compared to last year’s revenue.

 

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